WARNING! Living Trust Scams Targeting our Seniors
Don't loose Medicaid Benefits because of a Living Trust!
My grandmother recently responded to a post card advertising
piece received in the mail. The company that sent the post card
eluded that they were 'approved' by AARP and made the claim
"The Choice is Yours: Sacrifice Your Assets to the State or
Protect Your Loved Ones."
Grandma did not think to call me, or anyone else in the family.
She thought this post card was expecting her response, and so
she called and set an appointment for the company's
representative to visit her at home.
This representative created 'common ground' almost
immediately with my grandma. One quick look around her home and
you see photographs and other evidence of a very
family-oriented, religious woman. Grandma was immediately put at
ease at the friendly, self described 'Christian' who claimed to
share the same family values as grandma.
Once trust was created, he then began to educate my grandmother
on the 'horrors' of probate and the, as he put it, 'untrue
legal advice attorneys provide while attempting to create more
revenue for themselves.'
This company is selling Living Trusts to older unsuspecting
elders, charging $800 to guarantee that their estate will not go
through probate, guarantee that the final wishes outlined in the
Will are carried out properly and claimed this Living Trust will
save 'thousands of dollars'.
Although an attorney owns this company, the local
representatives are not attorneys. They are sales people,
selling one product for a commission. They are not there to
serve the elder's best interests. A Living Trust is not a
'one-size-fits-all'. In fact, there are varieties of Trusts
available with logical and useful applications, however, not
every senior is in need of such a legal document.
When grandma decided to call me to ask my opinion, I did what
most consumers would do. I checked the Better Business Bureau
and found no complaints. I then went to the AARP site, which
this firm claimed had endorsed their company.
Sure enough, this company is listed on the AARP site for a fee.
I found this company by going to Member Services and clicking on
'Financial Services' and then did a keyword search for the
company.
Members Financial Services
I had to really dig into this site to find the AARP disclaimer.
Most consumers would not have thought to do this, in fact, at
first glance; it appeared as though this company was 'endorsed'
by AARP. I personally, found this to be a disappointment
considering the fact that AARP wants to be considered an
'authority' on elder care issues.
I found the disclaimer in an article on Estate Planning/Articles It
says, in the middle of the article, AARP does not sell or
endorse any living trust products. AARP does not work
cooperatively with any company that sells or promotes living
trust documents. AARP does not give such companies the names or
addresses of its members.
Dispelling Myths
Deciding on whether or not a Trust is in your best interest is
best left to an elder-law attorney or an eldercare financial
planner. A Senior Approved service, available in Ohio, that can
help personalize Medicaid planning is Raymond James Financial Services
I have learned a few pointers:
Medicare and Medicaid planning varies state by state. In Ohio,
Medicaid does NOT consider your home a 'Countable Resource', if
you meet the following rule:
The Ohio Medicaid rule is: "The home and contiguous land is
exempt as long as it is occupied by the Medicaid recipient or by
- the CS (community spouse)
- by a child who is younger than age 21, blind or disabled
- by a child who is age 65 or older and who has a countable
income not exceeding the need standard for the Temporary
Assistance for Needy Families
- by a sibling who has a verified equity interest in the home
and who was residing in the home for at lest one year
immediately before the date the individual was admitted to the
medical institution.
However, if you assign the deed of your home to a Living Trust,
you loose this exemption and your home is now considered a
'Countable Resource'.
Many seniors will find themselves in need of Medicaid assistance
to help pay for health care services. Medicaid, once an
'entitlement program' available to those that met the age and
income criteria, is now a completely different program allowing
the state to collect the Medicaid reimbursement from your
estate. The federal guidelines and the individual state
guidelines are not always the exact same guidelines. Each state
has been provided a great deal of flexibility in how they
interpret and govern Medicaid. Ohio happens to be one of the
worst states.
In fact, in a recent article published in Forbes Magazine,
entitled 'Best Places to Die'', Ohio ranked 49 out of fifty for
this and other reasons. See
Best Places to Die
The Probate Myth:
If you are like my grandma, with less than a total of $200,000
in assets, chances are a Living Trust is not a reasonable
vehicle to purchase simply to avoid probate. We have
learned that as long as the deed, the bank accounts, the
insurance policies and so forth are written with the proper
legal wording of 'survivorship' these assets will seamlessly
pass to the surviving spouse, without probate.
Just as the IRS has complicated tax returns to the point an
average citizen needs to pay for assistance in order to file,
the government has created the same quagmire with Medicare and
Medicaid issues.
In conclusion:
- Trusts have solid purposes, however, please speak with
someone who is well versed and educated on Medicare and Medicaid
issues before pursuing.
- Not having a trust does not mean your estate will definitely
go through Probate court.
- Do not assume you know how Medicare and Medicaid works.
Either speak with a professional that specializes in
elder planningissues privately, or attend one of the many
workshops to self-educate yourself.
- Seniors, please do not invite a sales representative in to
your home while you are alone. You want someone you trust (an
adult child or friend) to be in the home during this sales
presentation. This is not a 'dig'. You've been around the block
and are more savvy than most of us and you have the right to do
what you want. Just be aware that there are people out there
that know how to manipulate your trust. In fact, their sales
training teaches them 'how to' do just that.
- Never feel pressured to 'do it right now'. All professional
reputable services expect you to consider your options.
- Never give your birth date, social security number, bank
account numbers and so forth to anyone over the telephone or to
a stranger that has come to your home.
- Do not assume that a company with no complaints registered
with the Better Business Bureau equates to an 'approved'
service. Anyone with $500 can join the Better Business Bureau.
- Get all the facts before you make a decision. Ask a lot of
questions. Please, be careful.
Stop guessing! Select a Senior Approved Service! Phone toll free
at 877-620-6448 for one-on-one assistance, or visit Seniors Approve Free Web
Community